Democracy demands change in business leadership

Democracy demands change in business leadership

Eric E. Hallett, Head, Business English Center,
Prasetiya Mulya Business School, Jakarta, Indonesia,
eric@pmulya.ac.id

Every once in awhile I hear a friend or colleague murmuring
their desire to return to the "good old days" in Indonesia when
Pak Harto led the country. The cost-of-living was cheaper, there
were more jobs and more security, and everyone just seemed to be
happier with life. They mention things they now miss like
opportunity, stability, and hope among other things. Yet, I
wonder if there is more to their need to return to yesteryear
than just comfort and convenience. Perhaps what these people are
really missing is a sense of leadership.

Democracy does funny things to a society. Once our thirst for
participation in how we are governed is quenched it changes the
way we view our relationship to authority at many levels
including the workplace. At the national level we can no longer
tolerate the unquestioned demands of an authoritarian. We also
find that without the authoritarian we are left groping for
direction, stability, someone who will act as an anchor to our
hopes and dreams. Ultimately, we sense a collective emotional
vacuum. Where is our father?

This is also true in business. Business leaders in Indonesia
today must grapple with a general change in perception towards
leadership and the accompanying shift in emotional needs among
peers and subordinates. They can no longer rely on just being
iron-fisted decision-makers among increasingly critical
employees. When leadership styles change from authoritarian to
participative, both in politics and in business, a sense of
wandering or lack of direction follows. Workers and the
population in general still need to be led, but from a different
perspective.

The dilemma that our business leaders face today is this: How
can they successfully lead a company or organization where
workers are becoming increasingly familiar with being involved in
new ways and less comfortable with simply following commands?
What can they do to minimize discontent as "authoritarianism"
gradually falls out of style and psychological needs for
fulfillment increase?

First, our leaders must realize that, as authoritarian methods
of leadership become less desirable and psychological needs
change, new leadership styles must be adopted at the same time.
They must recognize that they are the source of direction for
their business or organization and develop their role at the
forefront of the business as emotional leaders, not just
decision-makers.

Second, as emotional leaders, executives must inspire and
motivate those around them to "buy-in" to their ideas and plans
for the business, not to just accept commands. Instead of
insisting on loyalty, they must invite loyalty by sharing a
vision for the future that excites people and attracts them to
participate in a joint effort together.

Third, successful business leaders in Indonesia's new
political climate must communicate in new ways that require them
to come out from behind closed doors and into the center of
activity. If executives need "buy-in" from those around them,
they're going to have to talk about more than the latest company
data.

The amount of communication we have with people and the depths
at which we communicate with them determine our level of
intimacy. If we are intimate with people they will do almost
anything for us. Think about your family.

On the other hand, if we are distant with people they will
rarely do anything for us. As leaders who are transitioning from
authoritarian or reclusive roles in the workplace to more open,
sharing roles we have no choice but to share our dreams, hopes,
successes, and failures if we are to be successful -- even if
this means increasing our level of vulnerability.

Examples of powerful leaders who were also great communicators
abound throughout history. Their success is correlated with their
ability to share their values, goals, and passions, and to win
the support of their constituents.

Yet, even with such numerous examples of effective leadership
to convince us, it may be difficult to shift our leadership style
from closed and authoritarian to open and participative because
our leadership style is deeply rooted within the values of our
culture. The wise leader recognizes this and is prepared to make
changes in his/her leadership style as society's sense of values
and even the national culture itself changes side-by-side with
changes in the political process.

I believe that what my friends and colleagues pine for when
they reminisce about yesteryear is more than just leadership
itself. Ask any of them to think closely about returning to those
days and hesitations arise.

What they are really missing is something that must come with
a new style of democratic leadership in Indonesia -- collective
goals, plans, ideas, and hopes for the future.

What they really need is leadership that organizes and shares
these goals, plans, ideas, and hopes through vision for the
future that is communicated. They desire leadership which compels
and motivates them by asking them to make a choice, to believe,
and to act -- both in business and in politics.

The writer is also a lecturer in International Comparative
Management.